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Which of the following would make a bank more stable? Maximizing profit by lending all reserves and making high interest loans. Maintaining a high level

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Which of the following would make a bank more stable? Maximizing profit by lending all reserves and making high interest loans. Maintaining a high level of reserves and diversifying lending among high and low risk borrowers. Meeting 1/3 of the reserve requirement so the bank can make more loans. Balancing debits and credits by eliminating loan defaults

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